Direct Forgiveness Slides (Read-Only)PPP COVID Revenue Reduction
Score & Direct Forgiveness
Effective date of PPP Direct Forgiveness IFR
Only for loans $150,000 or less for lenders that have
opted-in
PPP COVID Revenue Reduction Score & Direct Forgiveness
• Loans $150,000 or less represent 93% of outstanding PPP
loans
• Approximately 7 million loans remain to be forgiven • Many
borrowers will have to begin making payments on these loans in
the
very near future
• SBA has developed solutions to assist • COVID Revenue Reduction
Score (Score) • Direct Forgiveness
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PPP COVID Revenue Reduction Score & Direct Forgiveness
COVID Revenue Reduction Score (Score) • For lenders that choose to
opt-in:
• For Second Draw PPP loans - SBA is providing a COVID Revenue
Reduction Score (Score) that serves as optional method to document
borrower’s revenue reduction
• The Score was developed using current data on economic recovery
and return of businesses to operational status
• SBA will score all Second Draw PPP loans $150,000 or less and
will be visible to lenders to use on an optional basis
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PPP COVID Revenue Reduction Score & Direct Forgiveness
COVID Revenue Reduction Score (Score) for lenders that choose to
opt-in: • When Score validates the borrower’s revenue reduction,
use of
Score will satisfy the requirement for the borrower to document
revenue reduction
• When Score does not validate: • If borrower has not already
provided documentation to the lender,
borrower must provide documentation either directly to lender (if
lender does not opt-in to Direct Forgiveness) or upload to
Platform
• If borrower has already provided documentation to the lender,
lender will make forgiveness decision
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Direct Forgiveness Process • For lenders that choose to
opt-in:
• To enable lenders to efficiently provide forgiveness decisions,
SBA is allowing borrowers to submit forgiveness applications for
First Draw and Second Draw loans using SBA Platform
• Provides a single secure location for borrowers to apply for loan
forgiveness using electronic equivalent of SBA Form 3508S
• Platform will notify lenders when borrower has applied for
forgiveness • In the Platform, Lender reviews forgiveness
application and issues
forgiveness decision to SBA
Borrowers must submit forgiveness application directly to lender
when:
• Lender does not opt-in to use the direct borrower forgiveness
process • Borrower’s PPP loan amount is greater than $150,000 •
Borrower does not agree with the data as provided by the SBA system
of
record, or cannot validate their identity in the Platform (for
example, if there is an unreported change of ownership); or
• For any other reason where the Platform rejects the borrower’s
submission.
In such circumstances, borrowers must follow instructions from
their lender regarding how the lender expects the borrower to
submit a forgiveness application for its PPP loan
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Direct Forgiveness Process
(for participating lenders)
Sign-up for Direct Forgiveness • Lenders must first elect
participation into the Direct Forgiveness program offered by the
SBA. • This setting can be found within the Institution Settings. •
Please review and agree to the Services agreement. This feature is
available to all US Lenders at
no cost.
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Lenders may view their Borrower’s direct forgiveness submissions
and take action to approve, reject, or require borrower correction
(resubmission) – details on the following pages.
In the situations where a Lender disagrees with a Borrower, they
must submit the Not Approval and associated 3508 using the normal
Forgiveness process. These situations are not supported through the
Direct Forgiveness process.
Bank Admin users can leverage this Direct Submission Dashboard to
review and approve records submitted by their Borrowers.
Review and Action of Direct Forgiveness Lenders will need to review
the Borrower’s submission and make a decision to submit the
Forgiveness application to the SBA.
Lender Fully Approved – Submit to SBA: The Lender fully agrees with
the submission from the borrower and wishes to submit the
forgiveness request to the SBA for decision.
Review and Action of Direct Forgiveness Rejected – Borrower
required to contact Lender – this option would likely leveraged
for:
• Situations where the Lender needs to submit a Not Approved
decision and provide the original 3508s with their modified values;
the not approval exception process is not supported through the
Direct Forgiveness workflow.
• situations where the lender does not wish to process the request
(fraud, not properly originated, etc.)
Review and Action of Direct Forgiveness
Borrower Action Required – Withdraw and Resubmit: Lender should use
this decision when a correction to the application is required by
the borrower. The borrower will need to 1) withdraw their
application, 2) start a new forgiveness request, 3) complete the
request with required correction, 4) submit and DocuSign
After resubmitting, the Lender can review again and select a
decision. (Lender can send for borrower correction multiple times
if necessary)
Fields the borrower can edit include: • Primary contact name and
title • NAICS • Cover Period (8 or 24 weeks, other) • Number of
employees at application
or forgiveness • Receipt of PPP loans $2 Million+ • Amount spent on
payroll • Requested forgiveness amount • Demographics
Review and Action of Direct Forgiveness Note: In situations where
the Borrower has applied for less than full forgiveness, the
platform will indicate in Yellow that additional scrutiny is likely
appropriate.
FAQs and Additional Resources
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Lenders may access the “Resources” dashboard to access additional
guidance for using the Platform. In this dashboard, Lenders may
view tutorial videos, frequently asked questions, and links to
additional policy resources. This page is available to all lender
user groups (Admin, General User, Read Only).
Platform Help
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If Lenders have additional questions that cannot be answered via
the Platform Resources, they may submit a message to the SBA via
the Platform Inbox.
1. Click “Inbox” in the top banner. 2. Click on “New Message.” 3.
Select a message category, draft, and submit message.
1.
2.
3.
FAQ
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This platform can be accessed by visiting
forgiveness.sba.gov.
How do I contact the SBA?
The SBA’s PPP Lender Hotline is +1 (833) 572-0502.
Where can I find information about APIs?
A complete guide for Platform API use can be found here.
How many Platform users can each institution have?
Admin users may create up to 10 active users for each institution.
We recommend that no more than two users be Admins.
Is there a maximum number of documents that can be uploaded with
each application?
No, Lenders may submit an unlimited number of documents with each
application. The Platform supports pdf, xls, xlsx, csv, doc, docx,
jpg, jpeg, and png files.
Should I use the 3508EZ, 3508S, or the standard 3508 application
form?
Lenders should use whichever form they received from the borrower
to submit a forgiveness decision.
What happens if I submit and then need to withdraw an
application?
You can withdraw a forgiveness decision after it has been submitted
and before it has been reviewed by SBA ("Pending Validation"
status). Decision submissions are typically in “Pending Validation”
for 24 hours after submission. Lenders may submit a request to
withdraw a submission via the Platform Inbox once the submission
moves into “Under Review” status. SBA has the ability to withdraw a
submission on behalf of the lender.
Resource Description
Interim Final Rule on SBA Loan Review Procedures and Related
Borrower and Lender Responsibilities
Informs borrowers and lenders of SBA’s process for reviewing PPP
loan applications and loan forgiveness applications
PPP Interim Final Rule - Loan Forgiveness Requirements and Loan
Review Procedures as Amended by Economic Aid Act
Consolidates prior forgiveness rules and incorporates changes made
by the Economic Aid Act, including guidance for forgiveness of
second draw loans.
Procedural Notice 5000-20038, Procedures for Lender Submission of
Paycheck Protection Program Loan Forgiveness Decisions to SBA and
SBA Forgiveness Loan Reviews
Informs PPP Lenders of the processes for submitting decisions on
PPP borrower loan forgiveness applications to SBA, requesting
payment of the forgiveness amount determined by the Lender, SBA
loan forgiveness reviews and payment of the loan forgiveness amount
determined by SBA.
Business Loan Program Temporary Changes; Paycheck Protection
Program – Revisions to Loan Amount Calculation and
Eligibility
Allows individuals who file an IRS Form 1040, Schedule C to
calculate their maximum loan amount using gross income and removes
certain eligibility restrictions.
3508 Application Form and Instructions SBA Form 3508 (standard)
forgiveness application and instructions, updated January
2021
3508EZ Application Form and Instructions SBA Form 3508EZ
forgiveness application and instructions, updated January
2021
3508S Application Form and Instructions SBA Form 3508S forgiveness
application and instructions, updated January 2021
Treasury Website Additional Procedural Notices, Final Rules, and
other information.
SBA PPP Website Additional resources and guidance around SBA's PPP
loan program.
For detailed guidance on policies and procedures related to the PPP
loan program and forgiveness, please reference the following
documents:
• If you need additional guidance, please contact the following
resources: • SBA PPP Lender Hotline: +1 (833) 572-0502 • For
general Forgiveness questions: SBA Forgiveness Inbox • For
technical Platform questions: Platform Inbox